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Xbox Game Pass and Co: Shawn Layden doubts about the sustainability of subscription services

In a current interview, Shawn Layden, the former CEO of the PlayStation division, left various topics.

For example, he went to the current acquisitions of Microsoft and Sony Interactive Entertainment and described them as a negative development for the industry, under which the variety could suffer shortly or long. Similarly skeptically Layden is facing subscription services such as the Xbox Game Pass. Here, Layden doubts, above all, due to rising development costs on the sustainability of appropriate services, which in his opinion would have to achieve almost highly new numbers to be profitable in the long run.

Provider must first accept losses

"It is very difficult to start a $ 120 million-dollar game through a subscription service that costs $ 9.99 per month. You must have 500 million subscribers before they start paying their investment. Therefore, they must now take a loss-bearing position to try to enlarge this base. But still if they have only 250 million consoles, they will not achieve half a billion subscribers. How do you call this problem? Nobody has found that yet, "Layden is quoted.

In how far the numbers thrown by Layden in the room realistically reveals, however, is at this point, however, because Microsoft's first-party productions were not only purchased via the Xbox Game Pass, but instead continues to be very classic about the PC and the Xbox Platforms can be purchased. Added to the sale of separate DLCs, as the subscription service usually only the respective main game is provided.

Neverwinter Xbox One Review

on the subject : Shawn Layden: Studio's takeover according to ex-you-boss bad for the industry

Another factor is the fact that the Xbox Game Pass is not only available on the consoles. The PC and mobile platforms are now supplied with the subscription service, from which Microsoft promises great growth in the coming years. More detailed details on the financial events such as the fees that Microsoft pays third-party manufacturers who offer their games over the Xbox Game Pass, did not name the Redmond company so far.

Therefore, it can only be speculated how many subscribers are needed in the end to build a profitable business with the service. However, it is certain, however, that other industry sizes like Sony Interactive Entertainment pursue the development of the Xbox Game Pass very closely in order to be able to react accordingly in case of doubt.

Source: Gamesindustry

Further messages on EA Play, PlayStation Now, Xbox Game Pass.

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